Richard's Rapid Fire - March 2, 2018

March 2, 2018
CBA LIVE 2018: 10 Days Away from Retail Banking’s Premier Event – There is record attendance and 90 hours of info-packed programming at CBA LIVE 2018: Beyond the Bank. If you have not registered, there is still time to join fellow senior industry leaders at retail banking’s premier event. Each year, CBA LIVE continues to grow and I am excited by the outpouring of interest from bankers, regulators and industry leaders. Yes, we surpassed 1,400 attendees, including more than 660 bankers, (both new records) and the number keeps climbing. Remember to follow CBA on Twitter for timely information, important events and breaking announcements. Don’t have a Twitter account? Create one, and@CajunBanker could be your first follow! It will serve you well on your CBA LIVE journey and remember to use #CBALIVE.
 
Download CBA LIVE 2018 – Custom tailor your experience with our CBA LIVE 2018 app. It houses all the must-know information you need as a CBA LIVE attendee. Be sure to download it on iTunes or Google Play to gain access to our program and connect with fellow attendees. You will need the app to access our program onsite.
 
 

BANKING REFORM ON THE MOVE

Senate Eyes Passage of Dodd-Frank Reform – Senate Banking Committee Chairman Mike Crapo (R-ID) has been shepherding through Congress a financial reform bill aimed at updating aspects of Dodd-Frank. While the bill does not reform the CFPB (a Commission at the CFPB is strongly needed), the bill does raise the threshold for Systemically Important Financial Institution (SIFI) designations to $250 billion, among other provisions. We highly expect the bill to be voted on next week.
 
House Deputy Majority Whip Sees Path to House Passage – Speaking at a conference in D.C., House Chief Deputy Majority Whip Patrick McHenry voiced support for Senator Crapo’s financial reform bill, noting he expects it to pass the House by August. Don’t count your chickens too early, but McHenry’s comments sound promising.
 
Fed Chair Supports SIFI Increase – Fed Chair Jerome Powell came out in support of raising the SIFI threshold, noting: “[The Federal Reserve’s] view has been that a combination of raising the threshold and giving us the ability to go below it in cases where needed gives us the tools that we need.”
 

D.C. DOWNLOAD

CFPB Issues RFI on Consumer Complaint Reporting – Continuing their weekly releaseof a request for public feedback, the CFPB is soliciting comments on consumer complaint reporting. The Comment period will remain open for 90 days from publication in the federal register and you bet CBA will be commenting.
 
All Companies Should Protect Consumer Data As Well As Banks – CBA, alongside six other financial trades, sent a letter to Representatives Blaine Luetkemeyer (R-MO) and Carolyn Maloney (D-NY) in support of a bill which raises the bar so all companies protect consumer data with the same high standards as banks. We all have an obligation to work to secure consumers’ important and sensitive financial information and this bill would bring about needed reform.
 
OCC’s New CRA Proposal Expected Soon – Bookmark this! Comptroller Joseph Otting expects the OCC to release new Community Reinvestment Act rules by the end of March and as soon as March 15. Speaking of the impending proposal, Otting said:
  • “We want to have a measuring system so that there is no doubt about whether banks are in compliance;”
  • “I don’t think there is any doubt” that the pendulum has swung too far in the direction of regulation;” and;
  • “[Allowing for greater flexibility] would free up capital and [allow] bank management to interact more with their customers to figure how to grow their business, as opposed to being inwardly focused.”
This is welcomed news and CBA will remain fully engaged in the process.
 
Acting CFPB Director on States’ Role in Enforcement – Speaking before an audience in Washington, D.C., Acting CFPB Director Mick Mulvaney voiced a desire for state regulators to play a greater role on enforcement cases: “We are going to be looking at the [state] regulators and the states attorney[s] general for a lot more leadership when it comes to enforcement.” Acting Director Mulvaney duly noted the CFPB will continue to do its job as well.
 
 

SPOTLIGHTING STUDENT LENDING

Private Student Loan Market is Doing Well – This week, I penned a letter to the editor inThe New York Times discussing the success of the private student loan market. A clear distinction must be made between federal and private student loans. The fact is 98 percent of private student loans are being repaid. Readers should be made aware of the Department of Education’s irresponsible and predatory lending practices.
 
 

TRENDING IN RETAIL BANKING

Banks Invest in Tech, Branches Still Key – At JPMorgan’s annual investor day, the bankannounced plans to invest $1.4 billion in technology in 2018! Banks are continuing to ramp up their digital channels and growth in this space will continue to accelerate across the industry. This is not to say brick-and-mortar locations will no longer play a role. The bank previously announced plans to expand its branch footprint in Boston, Philadelphia and Washington. Additionally, Bank of America recently announced plans to open 500 branches, hire 5,400 workers and expand their Branch footprint into Ohio. This just goes to show banks are taking an “all-of-the-above” approach to meeting consumer needs. You may hear more about these trends in CBA’s latest Suite 550 podcast featuring U.S. Bank’s Chief Innovation Officer Dominic Venturo.
 
Key Takeaways: FDIC Quarterly Banking Profile – Here are CBA’s top takeaways from the FDIC’s Quarterly Banking Profile for Q4 of 2017:
  • There was a sharp decline in return on assets, return on equity and net income due to one-time charges connected to changes to the tax code;
  • Bank portfolios remain healthy as non-performing loans decline; and
  • Loan and deposit growth has been steady.
 
CBA Visits with Citizens and Zions – What an experience at Citizens Bank’s Consumer Banking Leadership Conference this past week. It was an honor to be invited to speak and I appreciated the warm welcome from CBA Board Chair Brad Conner and the rest of the Citizens Bank crew. Also, great to visit with Zions CEO Harris Simmons and a host of CBA Committee members, including Trina Eyring, Lourdes Johnson, Jason Brock, Jeff Gardner, Richard Reed, Lincoln Taylor, Dustin Allen, Jamie Schwarzenbach and Brandon Lawson. I cannot wait to see many of them again at CBA LIVE!
 
Zions Bank CEO Harris Simmons & CBA President and CEO Richard Hunt in Salt Lake City, UT. Between them is Zion Bank’s massive, double-sided 2015 Comprehensive Capital Analysis and Review report to the Federal Reserve.
 
 
CBA WELCOMES OUR NEWEST MEMBERS
 
Old National – We are pleased to welcome Old National to the CBA Family! Our corporate membership now stands at 69 and we could not be more proud of our members’ commitment to their customers.
 
Avoka – We are excited to welcome Avoka to the CBA Family too! They are a software-as-a-service company which specializes in solving the problem of digital customer acquisition for banks and other financials.
 
 

LAGNIAPPE

James Smith, Former Webster CEO – Since retiring as Webster Bank’s CEO, James Smith has served as co-chairman of the Commission on Fiscal Stability and Economic Growth. The commission recommends ways to balance Connecticut's budget and theAmerican Banker highlighted his recent work in this great piece.
 
Eastern Bank Promos – Steven Antonakes, Director of Enterprise Risk Management, and Kathleen Henry, General Counsel and Corporate Secretary, have been promoted by Eastern Bank to Executive Vice President and appointed to the bank’s Management Committee.